This was interesting, but I think there's too much of a subtext of "hey, defaulting is harmless! Go ahead, do it!"
Spain's reliance on foreign bankers (and ship builders) rather than developing its own economy was a major cause of its downfall, mitigated by the immense amount of silver they got from Potosi.
Secondly, "and you, reader, have done every time you renewed your adjustable mortgage or consumer loan." is disingenuous at best. When someone renews or refinances their mortgage, the original lender is not taking a haircut in any way.
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This was interesting, but I think there's too much of a subtext of "hey, defaulting is harmless! Go ahead, do it!"
Spain's reliance on foreign bankers (and ship builders) rather than developing its own economy was a major cause of its downfall, mitigated by the immense amount of silver they got from Potosi.
Secondly, "and you, reader, have done every time you renewed your adjustable mortgage or consumer loan." is disingenuous at best. When someone renews or refinances their mortgage, the original lender is not taking a haircut in any way.
If the borrower has armies and nuclear weapons and the lender does not…
I found this article very interesting, although I needed to analyze more owned and better check the assumptions. But I found it very interesting.